Easily Hire, Manage, and Pay Your Employees in Vietnam
RecruitGo's Employer of Record service in Vietnam enables employers to hire top Vietnamese talent quickly and compliantly — without the cost and delay of setting up a local entity. You focus on growth; we handle social insurance, PIT, and labor code compliance.
Why Foreign Companies Hire in Vietnam
Vietnam is one of the fastest-growing economies in Southeast Asia, with GDP growth consistently above 6%. The country has become a major hub for manufacturing, software development, and BPO. A young population (median age 31), rapidly improving technical education, and salary costs 40-60% lower than China make Vietnam increasingly attractive.
For foreign companies, Vietnam offers a large pool of engineering and IT graduates (400,000+ STEM annually), competitive labor costs, active government support through economic zones and tax incentives, and a strategic location. The tech sector in Ho Chi Minh City and Hanoi has grown dramatically, with Vietnam now ranking among the top 10 for software outsourcing globally.
How RecruitGo Helps You Hire in Vietnam
Whether you need to hire without a local entity, run payroll, manage benefits, or process work permits, RecruitGo has a service for each stage.
Employer of Record (EOR)
Hire employees in Vietnam without forming a local company. RecruitGo handles labor contracts, SHUI registration, PIT withholding, trade union contributions, and full Labor Code compliance.
Payroll Service
Already have a Vietnamese entity? We process monthly payroll in VND, calculate PIT withholding, remit all SHUI contributions, and handle mandatory reporting.
Employee Benefits
Design and administer benefit packages that meet Vietnamese statutory requirements and compete for top tech and manufacturing talent.
Visa and Work Permits
Foreign nationals working in Vietnam need a work permit from DOLISA and a corresponding visa or temporary residence card. We manage the full process.
Vietnam Employment Snapshot
A quick-reference table covering the essentials of hiring employees in Vietnam.
| Currency | Vietnamese Dong (VND) |
| Minimum wage (2024) | 4 regions. Region I (Hanoi, HCMC): VND 4,960,000/mo (~USD 195). Region IV: VND 3,450,000 |
| Standard working hours | 48 hours/week (8 hrs/day, 6 days). Many offices: 40 hours/5 days |
| Overtime | 150% normal, 200% weekends, 300% holidays. Max 40 hrs/month, 200 hrs/year |
| Probation period | Up to 180 days (managerial), 60 days (college-level), 30 days (technical), 6 days (other) |
| Contract types | Indefinite-term and definite-term (up to 36 months). After 2 consecutive, next must be indefinite |
| Annual leave | 12 days (normal), 14 days (hazardous), 16 days (extreme). +1 day per 5 years service |
| Maternity leave | 6 months (180 days) fully paid by social insurance. +30 days pre-natal checks |
| Paternity leave | 5 to 14 days depending on birth circumstances |
| Social insurance (SI) | Employer: 17.5%. Employee: 8% |
| Health insurance (HI) | Employer: 3%. Employee: 1.5% |
| Unemployment insurance | Employer: 1%. Employee: 1%. Vietnamese only |
| Trade union fund | Employer: 2% of total payroll. Mandatory |
| Income tax (PIT) | Progressive: 5% (up to VND 5M) to 35% (above VND 80M) |
| Termination notice | 45 days (indefinite), 30 days (definite). Severance: 0.5 month per year |
| Public holidays | 11 days: New Year (1), Tet (5), Hung Kings (1), Reunification (1), Labor Day (1), National Day (2) |
| Language | Contracts must be in Vietnamese. Bilingual versions common but Vietnamese prevails |
How to Hire Employees in Vietnam as a Foreign Company
Foreign companies have three main options for hiring in Vietnam.
| EOR (RecruitGo) | Vietnamese LLC | Contractor | |
|---|---|---|---|
| Time to first hire | 3 to 7 business days | 6 to 12 weeks (DPI) | Immediate |
| Setup cost | None | USD 5K-15K+ plus charter capital | None |
| Compliance | RecruitGo | You | Contractor's responsibility |
| SHUI contributions | Handled by RecruitGo | Your responsibility | Not applicable |
| Trade union fund | Handled by RecruitGo | Your responsibility (2%) | Not applicable |
| Ideal for | 1-15 employees, market testing | 15+, permanent operations | True project work |
Entity setup in Vietnam is complex: A foreign-invested LLC requires DPI approval, an IRC, and an ERC. Charter capital varies by industry. Process takes 6-12 weeks. Post-setup compliance includes monthly SHUI filings, quarterly PIT, annual audits, and trade union contributions. Compare EOR vs entity in detail
Contractor misclassification: Vietnam's 2019 Labor Code broadly defines employment. If the worker follows your schedule and is integrated into operations, it's employment — triggering backdated SHUI (32% of salary), severance, and penalties.
Key Employment Rules in Vietnam
Social insurance, health insurance, and unemployment insurance (SHUI)
Vietnamese employees: employer 17.5% (SI) + 3% (HI) + 1% (UI) = 21.5%. Employee 8% + 1.5% + 1% = 10.5%. Total: 32%. Foreign employees: same SI and HI but no UI. Total: 30%. Plus mandatory 2% trade union fund on total payroll. Contributions capped at 20x base salary.
New Social Insurance Law 2024 (effective July 2025)
Coverage expanded to contracts of 1 month+ (was 3 months). Part-time workers above minimum wage included. Contribution base shifting to total real income. New "reference level" system. Lump-sum withdrawal restricted. Late payment interest 0.03%/day.
Leave entitlements
12 days annual leave (normal), +1 day per 5 years. Maternity: 6 months paid by social insurance — one of the most generous in ASEAN. Paternity: 5-14 days. Sick leave: 30 days/year at 75%. No statutory Tet bonus but virtually universal (1-2 months).
Termination and severance
Requires valid reason under 2019 Labor Code. Notice: 45 days (indefinite), 30 days (definite). Severance: 0.5 month per year for years not covered by UI. Wrongful dismissal: reinstatement + back wages + 2 months extra. All amounts settled within 14 days.
Foreign worker requirements
Work permit from DOLISA required. Needs: criminal record check (authenticated), health certificate, degree or 3+ years experience, employer justification. Valid up to 2 years. Takes 4-8 weeks. Some exemptions for transfers under 90 days.
What It Costs to Employ Someone in Vietnam
Total employer cost is typically 123-130% of gross salary. The primary driver is 23.5% employer contributions across SI, HI, UI, and trade union.
| Component | Monthly (VND) | Rate |
|---|---|---|
| Gross salary | 25,000,000 | — |
| Social insurance (employer) | 4,375,000 | 17.5% |
| Health insurance (employer) | 750,000 | 3% |
| Unemployment insurance | 250,000 | 1% |
| Trade union fund | 500,000 | 2% of total payroll |
| Total employer cost | ~30,875,000 | ~123.5% of gross |
SI and HI capped at 20x base salary. Trade union is 2% of entire payroll. Most companies also pay Tet bonus (1-2 months, virtually universal). EOR service fee not included.
Common Questions
What companies ask most about hiring in Vietnam.
Yes, through an Employer of Record (EOR). The EOR is a locally registered Vietnamese company that legally employs workers on your behalf. You manage the day-to-day work. The EOR handles contracts, SHUI registration, PIT withholding, trade union contributions, and all Labor Code compliance. Hire in 3-7 days without 6-12 week entity setup.
Vietnamese employees: SI 17.5% + HI 3% + UI 1% + Trade Union 2% = 23.5%. Foreign employees: same but no UI, so 22.5%. Employee pays SI 8% + HI 1.5% + UI 1% = 10.5%. Total combined: 32% for Vietnamese, 30% for foreigners. Capped at 20x base salary.
No statutory 13th month salary. However, the Tet (Lunar New Year) bonus is an extremely strong cultural expectation. Nearly all employers pay 1-2 months. Not paying would severely damage retention. Budget for at least 1 month as de facto mandatory.
Effective July 2025: coverage expanded to 1-month contracts (was 3 months). Part-time workers above minimum wage covered. Contribution base shifting to total real income. Lump-sum withdrawal restricted. Late payment interest 0.03%/day.
6 months (180 days) fully paid by social insurance — one of the most generous in ASEAN. Employee must have 6 months SI contributions in the 12 months before birth. Employers cannot terminate pregnant employees or those on maternity leave.
Valid reason required under 2019 Labor Code. Notice: 45 days (indefinite), 30 days (definite). Severance: 0.5 month per year for years not covered by UI. Wrongful dismissal: reinstatement + back wages + 2 months extra. Settle within 14 days.
Work permit from DOLISA required. Needs: criminal record check (authenticated), health certificate, degree or 3+ years experience. Valid up to 2 years. Takes 4-8 weeks. Some exemptions for transfers under 90 days.
